Accounts receivable insurance helps protect your business if valuable accounts receivable records are lost or damaged because of a covered event such as a fire, theft, vandalism or certain types of water damage. If customer account records are destroyed, this coverage can help pay the cost to reconstruct financial records, recover outstanding receivables and reimburse income that cannot be collected because of the covered loss.
This coverage can benefit many types of Colorado businesses that extend credit to customers or invoice after goods or services are delivered. Manufacturers, wholesalers, distributors, contractors, medical offices, dental practices, law firms, accounting firms, retailers, service companies and many other businesses may benefit from accounts receivable insurance. It is commonly purchased as part of a commercial property policy, Business Owner’s Policy (BOP), commercial package policy or inland marine policy to help protect one of a company’s most valuable assets.
How Much Does Accounts Receivable Insurance Cost in Colorado?
Accounts receivable insurance is often one of the more affordable commercial coverages available for Colorado businesses. Many small businesses may pay approximately $250 to $700 per year when coverage is included as part of a Business Owner’s Policy or commercial package policy. Businesses with larger receivable balances, higher revenues or more complex operations often pay between $700 and $3,000 annually, while larger manufacturers, wholesalers and companies with substantial outstanding receivables may pay several thousand dollars more depending on coverage limits and exposures.
The final premium depends on the amount of accounts receivable your business carries, annual revenue, industry, recordkeeping procedures, data backup practices, coverage limits, deductible, prior claims history and whether coverage is written as an endorsement or standalone policy. Businesses with strong accounting controls, secure electronic record storage and reliable backup systems may qualify for more favorable pricing.
Which Carriers Offer Accounts Receivable Insurance Coverage?
Castle Rock Insurance and its specialty partners work with a broad network of commercial insurance carriers that may offer accounts receivable insurance for Colorado businesses. Depending on your business operations and underwriting eligibility, coverage may be available through carriers and programs such as Travelers, Chubb, CNA, The Hartford, Liberty Mutual, Cincinnati Insurance, EMC, Auto-Owners, Hanover, Philadelphia Insurance Companies, Berkshire Hathaway GUARD, Great American, Nationwide, Markel, USLI, Coterie and other admitted and specialty commercial insurance markets.
Because every business has different financial exposures, there is no single carrier that is best for every situation. Castle Rock Insurance and its specialty partners compare multiple insurance companies to help Colorado businesses find competitive pricing and the right combination of accounts receivable insurance, commercial property, business income, cyber liability, inland marine and other commercial coverages based on their operations, revenue and risk profile.
Get an Accounts Receivable Insurance Quote Today
If your business depends on customer invoices and outstanding receivables, protecting those records can be an important part of your overall risk management strategy. Castle Rock Insurance and its specialty partners make it easy to compare accounts receivable insurance options from multiple commercial insurance carriers. Contact us today for a personalized quote and let us help you find the right protection for your Colorado business.
